Improve customer relationships with Master Data Management
Posted: Tue Jan 21, 2025 10:34 am
Master Data Management (MDM) is a critical success factor for building optimal customer relationship management processes. Discover the benefits.
Master Data Management (MDM) is a critical success factor for building optimal customer relationship management processes . Companies that do not complement their CRM systems with MDM are likely to achieve erroneous results that will ultimately deteriorate customer relationships, which can mean a reduction in potential revenue by up to 25 percent.
CRM leaders must understand the benefits that MDM brings to improving customer relationships and must make MDM a part of their CRM strategy. MDM is critical to enabling these CRM leaders to create the 360-degree view of the customer required for an optimized customer experience.
Organizations are moving toward a more integrated CRM approach that focuses on customer experience with improved interaction, across marketing, sales, customer service, e-commerce, and all other customer-facing channels . This approach requires an understanding of all customer relationships and interactions with the company.
This single or 360-degree view of the customer requires that all business owner database master data belonging to the customer be combined from all data silos where it currently resides . This data is then checked and cleaned for duplicates while selecting the highest quality values across all data sources for each master data attribute. The result is a single version of the truth for the master data.
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Customer focus: changing perspective, gaining relevance
Big Data and MDM to improve customer relations
MDM also offers CRM leaders the advantage to effectively use big data sources like social media . Organizations have routinely used business intelligence providers for things like segmentation, customer acquisition, and prospecting. However, in the past, this use most often occurred within a silo with a single system or business function, like marketing or sales, with no opportunity for coordinated reuse across the rest of the organization. Now companies are using social data to try to understand customer behavior and sentiment . And they do this in the aggregate, for areas like customer segmentation or problem resolution, or at an individual level to personalize campaigns and offers.
Master Data Management (MDM) is a critical success factor for building optimal customer relationship management processes . Companies that do not complement their CRM systems with MDM are likely to achieve erroneous results that will ultimately deteriorate customer relationships, which can mean a reduction in potential revenue by up to 25 percent.
CRM leaders must understand the benefits that MDM brings to improving customer relationships and must make MDM a part of their CRM strategy. MDM is critical to enabling these CRM leaders to create the 360-degree view of the customer required for an optimized customer experience.
Organizations are moving toward a more integrated CRM approach that focuses on customer experience with improved interaction, across marketing, sales, customer service, e-commerce, and all other customer-facing channels . This approach requires an understanding of all customer relationships and interactions with the company.
This single or 360-degree view of the customer requires that all business owner database master data belonging to the customer be combined from all data silos where it currently resides . This data is then checked and cleaned for duplicates while selecting the highest quality values across all data sources for each master data attribute. The result is a single version of the truth for the master data.
You may be interested in reading:
Customer focus: changing perspective, gaining relevance
Big Data and MDM to improve customer relations
MDM also offers CRM leaders the advantage to effectively use big data sources like social media . Organizations have routinely used business intelligence providers for things like segmentation, customer acquisition, and prospecting. However, in the past, this use most often occurred within a silo with a single system or business function, like marketing or sales, with no opportunity for coordinated reuse across the rest of the organization. Now companies are using social data to try to understand customer behavior and sentiment . And they do this in the aggregate, for areas like customer segmentation or problem resolution, or at an individual level to personalize campaigns and offers.